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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                          to                     .  
Commission File Number: 001-38358
INSEEGO CORP.
(Exact name of registrant as specified in its charter)
Delaware 81-3377646
(State or Other Jurisdiction
of Incorporation or Organization)
 (I.R.S. Employer
Identification No.)
12600 Deerfield Parkway, Suite 100 
Alpharetta,Georgia30004
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (858812-3400
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareINSGNasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No 
The number of shares of the registrant’s common stock outstanding as of November 1, 2021 was 105,126,385.



TABLE OF CONTENTS
 
 Page
Item 1.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

PART I—FINANCIAL INFORMATION
Item 1.     Financial Statements.




















INSEEGO CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and share data)
 September 30,
2021
December 31,
2020
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$58,114 $40,015 
Restricted cash3,495  
Accounts receivable, net of allowance for doubtful accounts of $402 and $1,384, respectively23,065 29,940 
Inventories33,701 33,952 
Prepaid expenses and other11,666 10,201 
Total current assets130,041 114,108 
Property, plant and equipment, net of accumulated depreciation of $25,902 and $21,715, respectively8,705 13,699 
Rental assets, net of accumulated depreciation of $17,443 and $15,754, respectively4,487 6,109 
Intangible assets, net of accumulated amortization of $44,085 and $63,020, respectively47,710 51,487 
Goodwill21,196 32,511 
Right-of-use assets, net8,010 9,092 
Other assets380 388 
Total assets$220,529 $227,394 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable$44,451 $52,339 
Accrued expenses and other current liabilities24,403 23,373 
Total current liabilities68,854 75,712 
Long-term liabilities:
2025 Notes, net157,879 165,147 
Deferred tax liabilities, net1,042 4,505 
Other long-term liabilities8,086 9,929 
Total liabilities235,861 255,293 
Commitments and contingencies
Stockholders’ deficit:
Preferred stock, par value $0.001; 2,000,000 shares authorized:
Series E Preferred stock, par value $0.001; 39,500 shares designated, 25,000 and 35,000 shares issued and outstanding, respectively, liquidation preference of $1,000 per share (plus any accrued but unpaid dividends)  
Common stock, par value $0.001; 150,000,000 shares authorized, 104,950,049 and 99,399,029 shares issued and outstanding, respectively105 99 
Additional paid-in capital766,736 711,487 
Accumulated other comprehensive loss(7,242)(6,972)
Accumulated deficit(774,931)(732,422)
Total stockholders’ deficit attributable to Inseego Corp.(15,332)(27,808)
Noncontrolling interests (91)
Total stockholders’ deficit(15,332)(27,899)
Total liabilities and stockholders’ deficit$220,529 $227,394 
See accompanying notes to unaudited condensed consolidated financial statements.
3



INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
 
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net revenues:
IoT & Mobile Solutions$56,975 $77,342 $151,770 $189,071 
Enterprise SaaS Solutions9,242 12,898 37,737 38,698 
Total net revenues66,217 90,240 189,507 227,769 
Cost of net revenues:
IoT & Mobile Solutions43,595 60,135 116,777 148,414 
Enterprise SaaS Solutions3,679 4,935 14,965 14,958 
Total cost of net revenues47,274 65,070 131,742 163,372 
Gross profit18,943 25,170 57,765 64,397 
Operating costs and expenses:
Research and development12,626 10,684 38,954 29,448 
Sales and marketing9,172 8,446 29,997 25,849 
General and administrative6,599 8,699 22,657 23,257 
Amortization of purchased intangible assets519 779 1,649 2,358 
Impairment of capitalized software  1,197  
Total operating costs and expenses28,916 28,608 94,454 80,912 
Operating loss(9,973)(3,438)(36,689)(16,515)
Other income (expense):
Gain on sale of Ctrack South Africa 5,262  5,262  
Loss on debt conversion and extinguishment, net (1,180)(432)(76,354)
Interest expense, net(1,655)(1,657)(5,178)(8,197)
Other income (expense), net(828)1,053 291 2,818 
Loss before income taxes(7,194)(5,222)(36,746)(98,248)
Income tax (benefit) provision(4)217 445 193 
Net loss(7,190)(5,439)(37,191)(98,441)
Less: Net income attributable to noncontrolling interests  (3)(214)(29)
Net loss attributable to Inseego Corp. (7,190)(5,442)(37,405)(98,470)
Series E preferred stock dividends and deemed dividends from the preferred stock exchange(1,843)(829)(3,596)(2,056)
Net loss attributable to common stockholders $(9,033)$(6,271)$(41,001)$(100,526)
Per share data:
Net loss per common share:
Basic and diluted$(0.09)$(0.06)$(0.40)$(1.06)
Weighted-average shares used in computation of net loss per common share:
Basic and diluted103,430,083 98,016,798 102,586,121 95,136,713 

See accompanying notes to unaudited condensed consolidated financial statements.
4


INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
 
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net loss$(7,190)$(5,439)$(37,191)$(98,441)
Foreign currency translation adjustment(2,571)1,170 (1,878)(10,734)
Release of cumulative foreign currency translation adjustments as a result of the sale of Ctrack South Africa1,608  1,608  
Total comprehensive loss$(8,153)$(4,269)$(37,461)$(109,175)
  Comprehensive income attributable to noncontrolling interests (3)(214)(29)
Comprehensive loss attributable to Inseego Corp.$(8,153)$(4,272)$(37,675)$(109,204)
See accompanying notes to unaudited condensed consolidated financial statements.

5



 
INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(In thousands)
(Unaudited)

Preferred StockCommon StockAdditional
Paid-in Capital
Accumulated
Other
Comprehensive Income (Loss)
Accumulated DeficitNoncontrolling InterestsTotal
Stockholders’ Equity (Deficit)
SharesAmountSharesAmount
Balance, June 30, 202035 $ 97,018 $97 $686,410 $(15,783)$(712,558)$(94)$(41,928)
Net loss— — — — — — (5,442)3 (5,439)
Foreign currency translation adjustment— — — — — 1,170 — — 1,170 
Exercise of stock options and vesting of restricted stock units— — 504 1 1,485 — — — 1,486 
Taxes withheld on net settled vesting of restricted stock units— — — — (45)— — — (45)
Issuance of common shares under settlement agreement — — 90 — 972 — — — 972 
Issuance of common stock in connection with Notes Exchange— — — — 1 — — — 1 
Issuance of common shares in connection with conversion of 2025 Notes — — 1,177 1 14,353 — — — 14,354 
Share-based compensation— — — — 2,207 — — — 2,207 
Series E preferred stock dividends— — — — 829 — (829)—  
Balance, September 30, 202035 $ 98,789 $99 $706,212 $(14,613)$(718,829)$(91)$(27,222)
Balance, June 30, 202135 $ 103,109 $103 $761,412 $(6,279)$(764,150)$8 $(8,906)
Net loss— — — — — — (7,190) (7,190)
Foreign currency translation adjustment— — — — — (2,571)— — (2,571)
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan— — 316  693 — — — 693 
Taxes withheld on net settled vesting of restricted stock units— — — — (280)— — — (280)
Release of cumulative foreign currency translation adjustments as a result of sale of Ctrack South Africa— — — — 8 1,608 (1,748)(8)(140)
Share-based compensation
— — — — 3,062 — — — 3,062 
Series E preferred stock dividends— — — — 739 — (739)—  
Series E preferred stock exchange(10)— 1,525 2 1,102 — (1,104)—  
Balance, September 30, 202125 $ 104,950 $105 $766,736 $(7,242)$(774,931)$ $(15,332)













6




INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(In thousands)
(Unaudited)
Preferred StockCommon StockAdditional
Paid-in Capital
Accumulated
Other
Comprehensive Income (Loss)
Accumulated DeficitNoncontrolling InterestsTotal
Stockholders’ Deficit
SharesAmountSharesAmount
Balance, December 31, 2019
10 $ 81,974 $82 $584,862 $(3,879)$(618,303)$(120)$(37,358)
Net loss— — — — — — (98,470)29 (98,441)
Foreign currency translation adjustment— — — — — (10,734)— — (10,734)
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan— — 1,471 2 3,196 — — — 3,198 
Taxes withheld on net settled vesting of restricted stock units— — — — (326)— — — (326)
Issuance of Series E preferred stock
25 — — — 25,000 — — — 25,000 
Issuance of Series E preferred stock in lieu of interest2 — — — 2,330 — — — 2,330 
Repurchase of Series E preferred stock(2)— — — (2,354)— — — (2,354)
Issuance of common shares in connection with private exchanges of 2022 Notes— — 13,739 14 66,074 — — — 66,088 
Issuance of common shares in connection with conversion of 2025 Notes — — 1,177 1 14,353 — — — 14,354 
Exercise of warrants— — 338 — 1,861 — — — 1,861 
Share-based compensation
— — — — 8,188 — — — 8,188 
Series E preferred stock dividends— — — — 2,056 — (2,056)—  
Issuance of common shares under settlement agreement— — 90 — 972 — — — 972 
Balance, September 30, 202035 $ 98,789 $99 $706,212 $(14,613)$(718,829)$(91)$(27,222)
Balance, December 31, 202035 $ 99,399 $99 $711,487 $(6,972)$(732,422)$(91)(27,899)
Net loss— — — — — (37,405)214 (37,191)
Foreign currency translation adjustment— — — — — (1,878)— — (1,878)
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan— — 2,081 2 3,535 — — — 3,537 
Taxes withheld on net settled vesting of restricted stock units— — — — (1,105)— — — (1,105)
Issuance of common shares in connection with the conversion of 2025 Notes— — 429  5,382 — — — 5,382 
Issuance of common shares in connection with a public offering, net of issuance costs
— — 1,516 2 29,368 — — — 29,370 
Share-based compensation
— — — — 14,467 — — — 14,467 
Series E preferred stock dividends— — — — 2,492 — (2,492)—  
Series E preferred stock exchange(10)— 1,525 2 1,102 — (1,104)—  
Release of cumulative foreign currency translation adjustments as a result of sale of Ctrack South Africa— — — — 8 1,608 (1,748)(8)(140)
Net noncontrolling interest acquired— — — — — — 240 (115)125 
Balance, September 30, 202125 $ 104,950 $105 $766,736 $(7,242)$(774,931)$ $(15,332)



7












INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
8


Nine Months Ended
September 30,
 20212020
Cash flows from operating activities:
Net loss$(37,191)$(98,441)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization19,131 15,948 
Provision for bad debts, net of recoveries346 240 
Impairment of capitalized software1,197  
Provision for excess and obsolete inventory587 430 
Share-based compensation expense14,467 8,188 
Amortization of debt discount and debt issuance costs1,117 3,632 
Fair value adjustment on derivative instrument(3,435)(1,372)
Loss on debt conversion and extinguishment, net432 76,354 
Gain on sale of Ctrack South Africa(5,262) 
Deferred income taxes175 110 
Other572 50 
Changes in assets and liabilities, net of effects of divestiture:
Accounts receivable2,834 (19,065)
Inventories(7,889)(2,078)
Prepaid expenses and other assets1,429 (3,918)
Accounts payable(7,206)25,170 
Accrued expenses, income taxes, and other3,939 11,464 
Net cash (used in) provided by operating activities(14,757)16,712 
Cash flows from investing activities:
Acquisition of noncontrolling interest(116) 
Purchases of property, plant and equipment(4,299)(5,084)
Proceeds from the sale of property, plant and equipment1,143 327 
Proceeds from sale of Ctrack South Africa, net of sold cash1
31,526  
Additions to capitalized software development costs and purchases of intangible assets(20,589)(20,216)
Net cash provided by (used in) investing activities7,665 (24,973)
Cash flows from financing activities:
Gross proceeds from the issuance of 2025 Notes 100,000 
Payment of issuance costs related to 2025 Notes (3,600)
Cash paid to investors in private exchange transactions (32,062)
Payoff of term loan and related extinguishment costs (48,830)
Gross proceeds received from issuance of Series E preferred stock 25,000 
Repurchase of Series E preferred stock (2,354)
Proceeds from the exercise of warrants to purchase common stock 1,861 
Net borrowing of bank and overdraft facilities315 110 
Principal payments under finance lease obligations(3,138)(2,243)
Proceeds from a public offering, net of issuance costs29,370  
Proceeds from stock option exercises and employee stock purchase plan, net of taxes paid on vested restricted stock units2,432 2,872 
Net cash provided by financing activities28,979 40,754 
Effect of exchange rates on cash(293)(2,573)
Net increase in cash, cash equivalents and restricted cash21,594 29,920 
Cash, cash equivalents and restricted cash, beginning of period40,015 12,074 
Cash, cash equivalents and restricted cash, end of period$61,609 $41,994 
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest$2,782 $640 
Income taxes$378 $286 
Supplemental disclosures of non-cash activities:
Transfer of inventories to rental assets$4,394 $2,650 
Capital expenditures financed through accounts payable or accrued liabilities$2,643 $3,786 
Right-of-use assets obtained in exchange for operating leases liabilities$148 $7,704 
Exchange of Series E Preferred Stock for common stock$11,982 $ 
Issuance of common stock in exchange for Series E Preferred Stock$13,086 $ 
Deemed dividend on exchange of Series E Preferred Stock for common stock$1,104 $ 
Issuance of common stock under Settlement Agreement$ $972 
Preferred stock issued in extinguishment of term loan accrued interest$ $2,330 
Debt discount and issuance costs extinguished in notes conversion$ $1,728 
2022 Notes conversion to equity$ $59,907 
Novatel Wireless Notes conversion to equity$ $250 
9


2025 Notes issued to extinguish the 2022 Notes$ $80,375 
2025 Notes conversion, including shares issued in satisfaction of interest make-whole payment
$5,383 $14,353 
1Amounts for the nine months ended September 30, 2021 are net of $5.0 million of cash sold as part of the sale of Ctrack South Africa (see Note 4. Business Divestiture).

See accompanying notes to unaudited condensed consolidated financial statements.
10

INSEEGO CORP.
Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Basis of Presentation
The information contained herein has been prepared by Inseego Corp. (the “Company”) in accordance with the rules of the Securities and Exchange Commission (the “SEC”). The information at September 30, 2021 and the results of the Company’s operations for the three and nine months ended September 30, 2021 and 2020 are unaudited. The condensed consolidated financial statements reflect all adjustments, consisting of only normal recurring accruals, except otherwise disclosed herein, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods presented. These unaudited condensed consolidated financial statements and notes hereto should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data as of December 31, 2020 was derived from the Company’s audited consolidated financial statements and may not include all disclosures required by accounting principles generally accepted in the United States. Except as set forth below, the accounting policies used in preparing these unaudited condensed consolidated financial statements are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for any other interim period or for the year as a whole.
Risks and Uncertainties
In December 2019, COVID-19 was reported to have surfaced in Wuhan, China, resulting in shutdowns of manufacturing and commerce globally in the months that followed. Since then, the COVID-19 pandemic has spread worldwide, and has resulted in authorities implementing numerous measures to try to contain the disease or slow its spread, such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns. The extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by the U.S. government, state and local government officials, and international governments to prevent the spread of the disease, all of which are uncertain and cannot be predicted.

In addition, a global semiconductor supply shortage is having wide-ranging effects across the technology industry. This semiconductor shortage has not materially impacted the Company but may impact the Company’s customers, and may negatively impact the supply of materials needed for our testing and production timeline. Our suppliers, contract manufacturers, and our customers are all taking actions to reduce the impact of the semiconductor shortage; however, if the shortage persists, the impact on our business could be material.

Liquidity
As of September 30, 2021, the Company had available cash and cash equivalents totaling $58.1 million, excluding restricted cash of $3.5 million, and working capital of $61.2 million.
On March 6, 2020, the Company issued and sold 25,000 shares of Fixed-Rate Cumulative Perpetual Preferred Stock, Series E, par value $0.001 per share (the “Series E Preferred Stock”), for an aggregate purchase price of $25.0 million.
In the first quarter of 2020, $59.9 million of the Company’s 5.5% convertible senior notes due 2022 (the “2022 Notes” formerly referred to as the “Inseego Notes”) were exchanged for common stock in private exchange transactions. Additionally, in the second quarter of 2020, the Company restructured its outstanding debt by completing a $100.0 million registered public offering (the “Offering”) of 3.25% convertible senior notes due 2025 (the “2025 Notes”) and also entered into privately-negotiated exchange agreements (the “May Exchange Agreements”), pursuant to which an aggregate of $45.0 million in principal amount of the 2022 Notes were exchanged for an aggregate of $32 million in cash and $80.4 million in principal amount of the 2025 Notes (the “May Private Exchange Transactions”). The Company also used a portion of the proceeds from the Offering to repay in full its previous term loan. In the third quarter of 2020, the Company redeemed the remaining $2,000 principal amount of the 2022 Notes.
During the quarter ended September 30, 2020, certain holders of the 2025 Notes converted approximately $13.5 million in principal amount of the 2025 Notes into 1,177,156 shares of the Company’s common stock in accordance with the terms of such notes. As of September 30, 2021, the Company’s outstanding debt primarily consisted of $161.9 million in principal amount of 2025 Notes.
On January 25, 2021, the Company entered into an Equity Distribution Agreement with Canaccord Genuity LLC (the “Agent”), pursuant to which the Company may offer and sell, from time to time, through or to the Agent, up to $40.0 million of shares of its common stock (the “ATM Offering”). In January 2021, the Company sold 1,516,073 shares of common stock, at an average price of $20.11 per share, for net proceeds of $29.4 million, after deducting underwriter fees and discounts of $0.9 million, and other offering fees, pursuant to the ATM Offering.
11

INSEEGO CORP.
Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company has a history of operating and net losses and overall usage of cash from operating and investing activities. The Company’s management believes that its cash and cash equivalents, together with anticipated cash flows from operations, will be sufficient to meet its cash flow needs for the next twelve months from the filing date of this report. The Company’s ability to attain more profitable operations and continue to generate positive cash flow is dependent upon achieving a level and mix of revenues adequate to support its evolving cost structure. If events or circumstances occur such that the Company does not meet its operating plan as expected, or if the Company becomes obligated to pay unforeseen expenditures as a result of ongoing litigation, the Company may be required to raise capital, reduce planned research and development activities, incur additional restructuring charges or reduce other operating expenses which could have an adverse impact on its ability to achieve its intended business objectives.
The Company’s liquidity could be impaired if there is any interruption in its business operations, a material failure to satisfy its contractual commitments or a failure to generate revenue from new or existing products. There can be no assurance that any required or desired restructuring or financing will be available on terms favorable to the Company, or at all. Additionally, the Company is uncertain of the full extent to which the COVID-19 pandemic will impact the Company’s business, operations and financial results.
Divestiture of Ctrack South Africa
On July 30, 2021, the Company completed the sale of its Ctrack business operations in Africa, Pakistan and the Middle East (together “Ctrack South Africa”). Initial cash proceeds of approximately $36.6 million were received. Net cash proceeds received were $31.5 million, net of cash sold of $5.1 million. Final cash proceeds were subject to certain post-closing working capital adjustments which totaled $2.6 million, out of which $2.2 million was received on October 29, 2021, and the remaining $0.4 million was offset with the Company’s existing accounts payable balance to an affiliate of Convergence Partners (“Convergence”), an investment management firm in South Africa. The Company recorded a receivable for such balance on September 30, 2021.
The Company will continue to provide telematics solutions in the rest of the world, including in Europe and Australia. See Note 4. Business Divestiture for additional information about the divestiture of Ctrack South Africa.
Principles of Consolidation
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly- and majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Segment Information
Management has determined that the Company has one reportable segment. The Chief Executive Officer, who is also the Chief Operating Decision Maker, does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and operating results.
Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ materially from these estimates. Significant estimates include revenue recognition, capitalized software costs, allowance for doubtful accounts receivable, provision for excess and obsolete inventory, valuation of intangible and long-lived assets, valuation of goodwill, valuation of derivatives, accruals relating to litigation, income taxes and share-based compensation expense. The inputs related to certain estimates include consideration of the economic impact of the COVID-19 pandemic. As the impact of the COVID-19 pandemic continues to develop, these estimates could carry a higher degree of variability and volatility, and may change materially in future periods.

Sources of Revenue

The Company generates revenue from a broad range of product sales including intelligent wireless hardware products for the worldwide mobile communications, and industrial Internet of Things (“IIoT”) markets, Inseego SubscribeTM, a hosted SaaS platform that helps organizations manage the selection, deployment and spend of wireless assets, and various Software as a Service (“SaaS”) products. The Company’s products principally include intelligent mobile hotspots, wireless routers for IoT applications, USB modems, integrated telematics and mobile tracking hardware devices, which are supported by applications software and cloud software services designed to enable customers to easily analyze data insights and configure and manage their hardware.
12

INSEEGO CORP.
Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company classifies its revenues from the sale of its products and services into two distinct groupings, specifically IoT & Mobile Solutions and Enterprise SaaS Solutions. Both IoT & Mobile Solutions and Enterprise SaaS Solutions revenues include any hardware and software required for the respective solution.
IoT & Mobile Solutions. The IoT & Mobile Solutions portfolio is comprised of end-to-end edge to cloud solutions including 4G LTE mobile broadband gateways, routers, modems, hotspots, HD quality VoLTE based wireless home phones, cloud management software and an advanced portfolio of 5G products. The solutions are offered under the MiFi™ brand for consumer and enterprise markets, and under the Skyus brand for IIoT markets. Effective in the third quarter ended on September 30, 2020, IoT & Mobile Solutions also includes the Company’s Device Management System (“DMS”), rebranded as Inseego SubscribeTM, that helps organizations manage the selection, deployment and spend of their customer’s wireless assets, helping them save money on personnel and telecom expenses.
Enterprise SaaS Solutions. The Enterprise SaaS Solutions portfolio consists of various subscription offerings to gain access to the Company’s Ctrack telematics platforms, which provide fleet vehicle, aviation ground vehicle and asset tracking and performance information, and other telematics applications.

2. Financial Statement Details
Inventories
Inventories, net, consist of the following (in thousands):
 
September 30,
20211
December 31,
2020
Finished goods$29,949 $27,009 
Raw materials and components3,752 6,943 
Total inventories$